topic Re: W-2 + 1099-misc question in Get your taxes done using TurboTax

W-2 + 1099-misc question

mgraves00 — Sun, 29 Mar 2020 15:35:22 GMT

I receive a W-2 From my employer and I just started (10/31/2019) doing some consulting on the side. I received a 1099-MISC from the contracting company. I did not play any estimated taxes on the moneys earned from the consulting. Should I have filed estimated taxes and am I looking at paying a penalty now? Or because I have taxes taken out by my primary employer should that offset the tax liability from the estimated taxes? I understand that either way I will still need to file a Schedule C.

Thanks in advance

Re: W-2 + 1099-misc question

KatrinaB48 — Sun, 29 Mar 2020 15:55:09 GMT

It depends on the amount of consulting income you received. If the amount of self-employed income is not significant and you ordinarily receive a refund, then you are probably not going to owe an underpayment penalty. Your employment withholding should help to offset your final tax liability. Generally, if you owe less than $1,000, you do not have to pay quarterly estimated tax payments and you will not owe an estimated tax penalty. Please view this TurboTax FAQ for more information about making quarterly estimated payments.

Re: W-2 + 1099-misc question

TomJ2 — Sun, 29 Mar 2020 16:00:47 GMT

Generally, most taxpayers will avoid this underpayment penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. For next year you can either pay quarterly estimated tax payments or have your withholding increased by an amount that you will own from the consulting business.